'Appalling': Government unhappy with number of workers promised six to eight months of work, then laid off after two months
Prince Edward Island has declined a federal offer to raise the cap on low-wage temporary foreign workers for rural employers.
Ottawa announced in March that it would temporarily raise the cap on low-wage temporary foreign workers from 10 to 15 per cent of a workplace for rural employers in participating provinces and territories, citing ongoing labour shortages.
P.E.I. is the only Atlantic province that has opted out.
"After considering the available information and the needs of Island employers, Prince Edward Island determined that participation in the temporary measures was not required at this time," the province said in a statement to CBC News.
Federal data provided to the province showed the measure would have affected 14 employers and about 46 positions, most in accommodation and food services, according to the statement. The province said it will instead address labour needs "through existing workforce development, immigration and recruitment initiatives," according to the report.
With the 2026-2028 Immigration Levels Plan, Ottawa is reducing Canada’s temporary population to less than five per cent of the total population by the end of 2027. Targets for new temporary resident arrivals are set at 385,000 in 2026, and 370,000 in both 2027 and 2028.
Following the federal government’s announcement in March, the provincial governments of British Columbia, Alberta, Saskatchewan and Ontario said they were not consulted in advance prior to the decision.
“We need to consider it carefully and do analysis of the federal announcement before deciding whether or not the province will opt in," a spokesperson for B.C.’s Ministry of Post‑Secondary Education and Future Skills said.
Additional pressures for employers
Louis-Philippe Gauthier, Atlantic vice-president of the Canadian Federation of Independent Business, called the decision "unfortunate" in comments to CBC News, saying local recruitment has failed to draw enough applicants. "People are simply not responding to the positions... for many, they just don't want to do those types of jobs," he said.
Mitch Martin, executive director of the Greater Summerside Chamber of Commerce, said in an email statement to CBC News that the decision could add pressure on small and medium-sized businesses already struggling to recruit. "When additional labour supports are not available, employers can face increased wage pressures, reduced operating hours, and added strain on existing staff," he said.
Martin added the impact could extend beyond food services into tourism, seafood processing, agriculture, manufacturing and retail, all sectors dependent on seasonal and entry-level labour on the Island.
P.E.I.’s reduced immigration targets hurt business in 2024, according to a previous report.
Canadian employers are facing growing uncertainty as more than 1.3 million temporary work permits are set to expire by the end of 2026, raising concerns about labour shortages, supply chain stability and business closures, according to a group.
Here's a summary table of each province's and territory's decision on the federal government's rural TFW cap expansion, based on the sources gathered so far:
